Brodsky & Smith Says Proposed Acquisition By Kohlberg May Undervalue Steinway

(RTTNews) - Law office of Brodsky & Smith, LLC announced Saturday that it is investigating potential claims against the board of directors of Steinway Musical Instruments, Inc. (LVB) relating to the proposed acquisition by an affiliate of private equity investment firm Kohlberg & Company, in a transaction valued at about $438 million.

Brodsky & Smith stated that as per the terms of the deal, Steinway shareholders will receive only $35.00 in cash for each share of Steinway stock they own. The firm added that the transaction may undervalue Steinway as the price being paid appears below multiples of comparable transactions.

The investigation is related to possible breaches of fiduciary duty and other violations of state law by the board of Steinway for not acting in the company's shareholders' best interests in connection with the sale process.

On July, 1, Steinway, a manufacturer of musical instruments, announced that it has entered into a definitive agreement to be acquired by an affiliate of Kohlberg & Company and its board unanimously recommended that the company's stockholders tender their shares in the tender offer.